ADSL2+ and HDTV do not mix,

Analysys: Incumbent operators that intend to launch IPTV and triple-play services may find ADSL2+ lacking,

Real-life speeds of all DSL technologies can be as much as 40% lower at source than their theoretical maximum, and, despite continuing improvements in digital processing, ADSL2+ does not leave a lot of reliable bandwidth to play with over and above one HDTV stream. Standard digital TV may provide a stop-gap for the near future, but HDTV will be the future standard, and ADSL2+ won’t cope. If ADSL2+ isn’t enough then operators must look to VDSL2 and fibre, adds Scott.

• At present, cabinet-based VDSL technologies are the most financially-sound option in Western European countries, though payback will take at least six years
• Large fibre-to-the-premises (FTTP) builds will not earn a return on investment (ROI) for at least 15 years, making state-aided builds the only viable model. Operators should follow the lead of France Telecom, however, and initiate trials to gauge potential demand and usage
• Telcos must consider losses from not upgrading copper networks, as well as gains from upgrading them. Cash lost from doing nothing could exceed cumulative negative cash flow from a fibre build after as little as ten years under favourable market conditions

Fibre in the Last Mile: the business case for FTTP and VDSL Publ 20060912